DELTA P’s bunker-fire generator project awaits ERC’s approval

DELTA P’s proposal on bunker-fire generators moves forward following a quasi-judicial public hearing conducted by the Energy Regulatory Commission (ERC) on Friday, February 17 at PALECO’s APEC building. From the said hearing, Judge Josefina Patricia Magpale-Asirit requested the proponents behind the application, namely DELTA P and PALECO, to submit narrative reports and to complete the rest of the jurisdictional requirements in order to get ERC’s approval.

DELTA P made an expository presentation in the said hearing so the ERC can assess the proposal’s completion of requirements. The program particularly anchored on DELTA P’s and PALECO’s joint application for a second contract concerning the Power Supply Agreement (PSA) between the said two parties. The Commission said the proponents have partially complied with the requirements and ordered the latter to complete the rest. Delta P requested for another 10-15 days completion period, and the ERC allowed a 60-day period.

Delta P first submitted its unsolicited proposal on building bunker-fire generators, which can give an additional 26.65 MW to the current power supply being distributed to PALECO, on March 3, 2015, this according to a press release by the electric cooperative. PALECO, in response, steered a “competitive selection process” wherein five companies challenged Delta P’s proposal. Two out of five competitors remained and pre-qualified, and bidding documents were given by PALECO. However, none of the competitors were able to submit their comparative proposals by the deadline set on November 17, 2015, and PALECO eventually gave the agreement to Delta P.

On March 18, 2016, PALECO and Delta P signed the first contract, which will expire on April 3, 2019.

PALECO General Manager Ric Zambales Sr said he is certain the commissioners were satisfied with the whole presentation and will approve the agreement. He hopes for the case to be settled soon as Delta P complies with all the requirements.